WITN11020100 Gareth Davies ​- First Witness Statement

Evidence on official site

WITN11020100
WITN11020100

Witness name: Gareth Davies
Statement No.: WITN11020100
Dated: 2 February 2024

POST OFFICE HORIZON IT INQUIRY

FIRST WITNESS STATEMENT OF GARETH DAVIES

INTRODUCTION

1. I Gareth Davies, Permanent Secretary of the Department for Business and
Trade, Old Admiralty Building, Admiralty Place, London SW1A 2DY, will state
as follows.

2. I make this statement in response to the Inquiry’s request for evidence dated 8
December 2023, in order to assist the Inquiry in relation to the role of the
Department for Business and Trade (“DBT” or “the department’) and its
predecessor departments’ in the Post Office's corporate structure in the period

between 1 January 1999 and 1 June 2021.

3. As Permanent Secretary, I am the Civil Service head of the department. I was
appointed to the position of Permanent Secretary in the Department for
International Trade in January 2023, and then the Department for Business and

Trade in February 2023 following the Machinery of Government change. With

‘The Department for Business, Energy and Industrial Strategy (“BEIS”), the Department for
Business, Innovation and Skills (“BIS”), the Department for Business, Enterprise and
Regulatory Reform (“BERR”) and the Department for Trade and Industry (“DTI”).
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 1 of 20
WITN11020100
WITN11020100

my senior team, I am responsible for the overall leadership and management
of DBT. Our primary aims are to support our ministers in the achievement of
their objectives and to oversee the effective day-to-day running of the
department. In addition, as Principal Accounting Officer I am personally
responsible to Parliament for the effective stewardship of the department's
resources and for ensuring value for money. As a member of the wider
Permanent Secretary team, including the Civil Service Board, I am also part of
the collective leadership of the Civil Service. I have previously held a number
of senior civil service roles including from 2015 to May 2019 as a Director

General in DBT's predecessor departments?.

4. I make this statement on behalf of the department. I have been assisted in its
preparation by officials within my department, as well as the Government Legal
Department and counsel. The information set out in this statement is not known
to me personally, and I have therefore drawn and relied upon extensive input
from colleagues®. It is in that sense a ‘corporate statement’. Its contents are

true to the best of my knowledge and belief.

5. 1am authorised by the Secretary of State for Business and Trade to make this

statement.

OVERVIEW

2 The Department for Business, Innovation and Skills (to July 2016) and the Department for
Business, Energy and Industrial Strategy.

° This statement also draws extensively on previous responses made by the Department to
the Inquiry, including its response to the Inquiry’s Call for Evidence and its responses
(prepared jointly with UKGI) to the Inquiry’s “batch requests”.
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 2 of 20
WITN11020100
WITN11020100

6. Post Office Limited (“POL”) is a private limited company which was
incorporated at Companies House on 13 August 1987. Prior to this, the Post
Office existed as a statutory corporation: a corporate public authority created
by Act of Parliament, the Post Office Act 1969. The private limited company
formed in August 1987 was initially called Post Office Counters Limited
(‘POCL”) before being renamed as Post Office Limited on 1 October 2001.
Upon the incorporation of POCL / POL in 1987, its controlling shareholder was

the Post Office (the statutory corporation)‘.

7. As a statutory corporation, the Post Office was a separate and distinct public
authority with functions and powers limited to those conferred by statute. Under
section 11 of the Post Office Act 1969°, the Secretary of State and Minister for
Postal Services were given powers concerning the control and supervision of

the Post Office in exercising its statutory functions.

8. The Post Office (the statutory corporation) continued as POCL’s controlling
shareholder until 25 March 2001, when all but one of the shares in POCL® were
transferred to a new holding company (initially called Consignia plc)’, in which

the Government was the ultimate sole shareholder®.

9. Though the precise corporate and ownership structure has changed over time,

the Government has been POCL/ POL'’s ultimate controlling shareholder at all

* It held 49,999 of the 50,000 shares. The remaining share was allocated to Sir Ronald
Dearing, the chairman and chief executive of the new company.

5 The powers in section 13 were repealed in 1981.
® The other being held by Anthony Roberts, chief executive.

7 The old Post Office statutory corporation was formally abolished with effect from 1 May 2007
by the Dissolution of the Post Office Order 2007.

® Through its shareholding in Consignia Holdings plc, Consignia plc’s holding company.
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 3 of 20
WITN11020100
WITN11020100

relevant times. Since 10 September 2013, the Secretary of State for Business
and Trade (and its predecessor departments) has been ultimate sole
shareholder in POL on behalf of the Government. Prior to this, the Secretary
of State was one of the ultimate shareholders of POCL / POL on behalf of the

Government, but not the only one®.

10.As shareholder, the Secretary of State has at all times had powers — whether
direct or indirect — in relation to the Post Office’s corporate governance
structure. Amongst these were powers in relation to appointments to the POL
board and to amend POL’s Articles of Association (“Articles”). Before 2017,
these powers arose only indirectly because, as explained, whilst the Secretary
of State was a direct shareholder in the Post Office's holding company, she was
not a direct shareholder in POL itself. In addition, POL’s Articles, which were
amended over time, gave the Secretary of State certain rights and powers in
relation to POL itself, which as time progressed including in relation to

appointments and removals from POL’s board.

1

-From 1 April 2012, a single POL board member was appointed in order to
represent the Secretary of State’s (and, in turn, the Government's) interests on
the POL board, and to report relevant matters back to departmental civil
servants. This non-executive director (“shareholder NED”) appointment was
filled by a civil servant expert in corporate governance from within the
Government's specialist corporate governance function. Initially this function

was known as the Shareholder Executive (“ShEx”), which was created in 2003

® The other shareholders have at various times included the serving chief executive of POCL
/ POL and the Solicitor for HM Treasury.
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 4 of 20
WITN11020100
WITN11020100

and formed part of DBT’s predecessor department BIS'®. On 1 April 2016, this
body — together with its staff - was transferred to the new UK Government
Investments Ltd (“UKGI”), an Arm’s Length Body (“ALB”) of which the sole

shareholder was the Solicitor for HM Treasury.

12.\t is perhaps obvious, but nevertheless important to note, it is not the role of the
Secretary of State, departmental ministers or officials to run a corporate entity
of the size and complexity of the Post Office The day-to-day corporate issues
are overseen by the Post Office board. The role of Ministers and the Civil
Service was and remains to set the overall policy framework, with specialists
appointed to represent the department's interests and to seek to ensure that
the department's policy aims are pursued at the Post Office corporate level. An
important part of the shareholder NED role therefore was and remains to draw
the department's attention to any concerns that the Post Office board might not
be acting in accordance with the Secretary of State’s interests and wishes, or
otherwise to draw important matters to the department’s attention, so that
departmental officials could decide whether those matters required escalation

within the civil service and/or to ministers or the Secretary of State.

THE POST OFFICE’S STATUS AS A PUBLIC CORPORATION

13.POL has sometimes been referred to as an Arm’s Length Body, as this is
occasionally used as an informal term for all public bodies which are not central

government departments. However, formally POL is classified as a Public Non-

‘And, before this, within the Cabinet Office.
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 5 of 20
WITN11020100
WITN11020100

Financial Corporation (“Public Corporation”) by the Office for National Statistics’

national account system.

14. Public Corporations are designed to operate at arm’s length from ministers and
Government, with accountability placed with the board and executive team, who
are appointed based on their expertise and specialisms, to run the company.
This devolved governance model is designed to promote more effective and
efficient delivery of public services. The Post Office therefore had and continues
to have substantial independence from central government. It was, and

remains, a separate institution.

15.As a Public Corporation, the board of directors of POL and POCL before it (the
“Post Office Board”) was responsible for the corporate operations of the Post
Office. The Secretary of State as shareholder does not, and did not, have any
involvement in the day-to-day operations of POL or in the management of its

network of post offices and staff.

16.However, whilst the Post Office Board retains operational control, it is
accountable to the Secretary of State as sole shareholder for the performance
of POL and is required to seek her consent for certain matters, as set out in its
Articles. As detailed below, POCL’s / POL’s Articles were occasionally

amended or replaced during the period with which this statement is concerned.

17.POL’s chief executive (who is also a member of POL’s board) is designated as

Accountable Officer. The Shareholder Relationship Framework Document‘?

™ Post Office Limited: Shareholder Relationship Framework Document
https://assets. publishing. service.gov.uk/media/5e74fe04e90e073e313755cc/post-office-
limited-shareholder-relationship-framework-part-1.pdf
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 6 of 20

WITN11020100
WITN11020100

sets out the POL Accountable Officer as being “personally responsible for
safeguarding all funds for which he or she has charge; for ensuring propriety,
regularity, value for money and feasibility in the handling of those funds; and for
the day-to-day operations and management of POL. In addition, he or she
should ensure that POL is run on the basis of the standards of governance,
decision-making and financial management set out in Managing Public
Money"?, as well as ensuring that POL uses internal and external audit to

improve its internal controls and performance.”

18.The Secretary of State for Business and Trade is now — and has been since
2017 — the sole shareholder of POL. The department sets the policy framework
for POL and, since 2018, has had a dedicated policy team overseeing POL from
a policy perspective.’ By way of example as to the kind of overall policy
framework or strategic aim which the Government would set for POL, this would
include maintaining a minimum number of branches and a level of accessibility
that its network provides, to ensure presence in every community. These

requirements are linked to the funding that the Government provides to POL.

19.POL’s Articles set out the formal approval rights of the shareholder (i.e. the
Secretary of State). Further controls applied by Government to POL are
contained in other relevant governance documentation (for example, the
Shareholder Relationship Framework Document and Funding Agreement).

POL is also required to have regard to relevant Government-wide corporate

12 https://www.gov.uk/government/publications/managing-public-money

13 As noted below, in the period from its creation in 2016 until 2018, UKGI was also responsible
for overseeing POL from a Government policy perspective. Shareholder Executive (ShEx)
oversaw POL prior to this.
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 7 of 20
WITN11020100
WITN11020100

guidance. As is the case with any Public Corporation, the Government requires
POL to create and manage its own corporate processes and ensure good

corporate governance.

20.As part of the model described above, the Secretary of State delegated (and
continues to delegate) the day-to-day exercise of her rights as shareholder in
POL and/or its holding companies to UKGI, a wholly owned subsidiary of HM
Treasury which carries out the Government's corporate governance and

corporate finance functions.

THE PLACE OF POST OFFICE POLICY WITHIN THE DEPARTMENT

21.DBT and each of its predecessor departments have and had a wide range of
responsibilities, which included postal services. As in the majority of ministerial
departments, the Secretary of State is responsible for leading on overall
departmental strategy and delivery of the department's responsibilities. The
department's responsibilities are divided into Junior Ministers’ portfolios. In line
with this model, throughout the relevant period a Junior Minister had day-to-day
responsibility for postal services, with the Secretary of State providing higher-
level direction and support where necessary, including in overseeing public

appointments.

22.The department's civil servants are ultimately overseen by the Permanent
Secretary and are involved in carrying forward the day-to-day work required to

deliver according to the wishes and priorities of Government and ministers.

23. From its incorporation in April 2016, UKGI has been responsible for oversight
of POL’s corporate governance on behalf of the Secretary of State. As

First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 8 of 20
WITN11020100
WITN11020100

explained, this function was previously fulfilled by ShEx. Upon its creation,
UKGI effectively subsumed ShEx and, at the same time, ShEx’s documentation

and the majority of its personnel were transferred to UKGI."4

24.From April 2016 to August 2018, UKGI was also responsible for oversight of
POL policy issues from a Government perspective. Work in BEIS to improve
relationships with Partner Organisations such as POL was initiated following
Alex Chisholm’s appointment as Permanent Secretary in 2016. This work
culminated in the introduction of a new sponsorship model for BEIS Partner

Organisations.

25.As a result, in August 2018 the Post Office Policy Sponsor function was
established in BEIS and since then BEIS (and subsequently DBT) has acted as
POL’s policy sponsor within Government. This means that BEIS, and now DBT,
has set the policy direction for the Post Office in the way described above. DBT
is responsible for setting the Government policy framework for POL, for
example, in safeguarding the Post Office’s social purpose. The policy sponsor
also ensured that POL’s activity was consistent with the wider Government
policy framework, facilitating POL’s access to Government as required and
responding to parliamentary scrutiny and reporting requirements.

26.UKGI retained responsibility for corporate governance and financial advice.

27.Currently, the Post Office Policy team in DBT is overseen by two Deputy
Director posts, reporting to the Director of Business Resilience who reports to

the Director General of Business Sectors. The Director of Business Resilience

4 https://www.ukgi.org.uk/2015/05/20/machinery-government-shareholder-executive-uk-
financial-investments/
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 9 of 20

WITN11020100
WITN11020100

oversees the policy for POL and is delegated Budget Holder for Post Office
Investment Funding and Subsidy. The Director General reports to the
department's Permanent Secretary. This set up has evolved gradually based

on resourcing requirements since summer 2018 when the team was formed.

THE RELATIONSHIP BETWEEN POL, THE DEPARTMENT AND UKGI/ SHEX

28.UKGI performs the shareholder role on behalf of the department and the
relationship between the department and UKGI is set out in a Memorandum of
Understanding (“MOU”) [BEISO000578]. It performs this for a number of
departments for different partner bodies.

29.1 set out below a short summary of the way in which this relationship is designed
to operate. UKGI will naturally be best placed to provide the Inquiry with closer

detail as to how it — and its predecessor ShEx - fulfilled and fulfils its roles.

30.UKGI performs its role in two main ways: (a) via a dedicated shareholder team
with appropriate expertise and experience (the “Shareholder Team”); and (b)
by acting as Shareholder NED, through occupying a Non-Executive Director

seat on the POL Board.

31.Key aspects of the shareholder role include:

(a) Working with POL and the department to maintain appropriate and
effective corporate governance arrangements which govern the
department-POL relationship, through up-to-date and fit-for-purpose
governance documents, including Framework Documents, the Articles

and annual Chair’s letter.

First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 10 of 20
WITN11020100
WITN11020100

(b) Reviewing and providing oversight of effective leadership (via boards
and senior management). This includes, in practice, advising the
Secretary of State as shareholder on the effectiveness of POL’s board
composition, the recruitment, remuneration and appointment processes
for the POL Chair and CEO, and inputting into the annual appraisal of

the POL Chair and POL Board effectiveness review.

(c) Assessing and challenging POL’s corporate objectives, POL’s board-
approved annual business plans and its three-year strategic plans.
Monitoring performance against POL’s business plans and compliance
with funding arrangements from a shareholder perspective. UKGI also

performs an essential role in monitoring POL’s network reporting.

(d) Encouraging strong corporate capability by providing high-level
challenge to POL on the strength of its governance systems,
predominantly via the Shareholder NED’s presence on the Audit, Risk
and Compliance Committee (“ARC”). Additionally, the Shareholder Team
works to promote the efficacy of POL’s internal risk management and

control functions.

(e) Supporting and supplementing the activities through the Shareholder

NED function on the POL Board.

32. Additionally, in support of the Shareholder NED, the Shareholder Team briefs
the Shareholder NED prior to POL Board and POL Board committee meetings.
The Shareholder Team is able to draw on its knowledge from day-to-day
interactions with POL, across a wide variety of areas (including regular

engagement with POL’s Head of Change, Risk and Assurance) to inform these
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 11 of 20
WITN11020100
WITN11020100

briefings. The department policy team participate in POL Board briefings and
debriefings, giving the Shareholder NED, the Shareholder Team and the
department policy team regular opportunities to raise concerns and to discuss

issues.

33.The Shareholder NED also has a seat on the Audit, Risk and Compliance
Committee and the Remuneration Committee (“RemCo’). The role of the
Shareholder NED is an important governance lever in the performance of the
shareholder role. The Shareholder NED’s attendance at the POL Board and
sub-committees provides the Shareholder Team, and (through it) the
department, with an important line of sight into developments at POL. Unlike
the other POL non-executive directors (“NEDs”), the Shareholder NED is not
appointed to the POL Board to provide specific subject matter expertise. Rather,
the Shareholder NED brings a government perspective to aid the POL Board’s

decision-making.

34.As a result, although the Shareholder NED has the same legal obligations and
responsibilities to POL as do the other NEDs, their functional relationship with
POL differs. The Shareholder NED regularly meets with departmental officials
and, when appropriate, Ministers to discuss developments at POL and relevant
Departmental / Ministerial interests. The Shareholder NED provides this
relevant context and perspective to the POL Board to aid its decision-making.
The Shareholder NED also provides the department with insight into the quality
of the POL Board and management in the performance of their functions. In
addition, the Shareholder NED also leads the Shareholder Team that interacts

with POL and the department on a regular basis.

First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 12 of 20
WITN11020100
WITN11020100

35.The establishment in August 2018 of the Post Office Policy team in BEIS
marked a change in the division of roles and responsibilities between POL,
UKGI and the department, as the Department took responsibility for overall
high-level policy direction and accordingly became more actively involved in
POL. The Director for Business Resilience was appointed in April 2019 and
Deputy Directors who work solely on this area shortly after.

36.BEIS became DBT on 7 February 2023. The department's Post Office Policy
team has remained unchanged throughout this Machinery of Government

change.

37. Through UKGI, and ShEx before it, DBT and its predecessor departments have
monitored POL’s performance, in particular its compliance with minimum
network access criteria and provision of specified services. DBT approves the
appointment of all non-executive directors (as well as the Chair and the CEO)
to the Board and typically has appointed a UKGI / ShEx employee for this
purpose since 2012 (the Shareholder NED).

38.On 1 April 2020, the Shareholder Relationship Framework Document,codifying
the relationship between POL, BEIS and UKGI came into effect. This document
provides clarity to all parties as to how Government oversees POL by
Government is to be conducted, sets expectations between the parties and

outlines the governance standards which POL must observe.

CHRONOLOGY

39.1 set out below an overview of the relevant corporate and governance structures
as they existed throughout the period with which this statement is concerned

(i.e. between 1 January 1999 and 1 June 2021).

First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 13 of 20
WITN11020100
WITN11020100

1 January 1999

40.As at 1 January 1999, all but one of POCL’s shares were held by the statutory
corporation known as the Post Office (the remaining share being held by
POCL’s chief executive and chair). DBT’s predecessor departments held no
direct or indirect shareholding at this time.

4

a

.The Post Office Act 1969'® conferred on the “Secretary of State” powers of
control and supervision of the Post Office (the statutory corporation), including
a power to issue certain directions; these powers were, in practice, exercised
by the Secretary of State for Trade and Industry.

42.As at 1 January 1999, POCL’s original unamended Articles [BEISO0000579]
remained in force. Amongst other provisions, paragraph 11.01 gave the Post
Office (the statutory corporation) the power to appoint and remove Directors

and paragraph 13.02 gave the Post Office to power to issue directions to POCL.

25 March 2001

43.On 25 March 2001, all but one share in POCL was transferred to Consignia
pic’® (the other being held by Anthony Roberts, chief executive). Consignia
Holdings plc‘” held all but one of the shares in Consignia plc, with the other

share being held by Jonathan Evans (company secretary).

‘5 Principally s.11
16 Now known as Royal Mail Group Ltd

17 Now known as Postal Services Holding Company Ltd
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 14 of 20
WITN11020100
WITN11020100

44.The Secretary of State was controlling shareholder, and holder of the single
“Special” redeemable preference share, in Consignia Holdings pic'®. The other
share was held by the Solicitor for HM Treasury. Consignia Holdings plc’s
Articles, passed on 4 January 2001, [BEIS0000580] conferred on the Secretary
of State particular rights over the company as a result of this shareholding.

45.Through this corporate structure, the Secretary of State was the ultimate

controlling shareholder of POCL.
4 October 2001

46.On 4 October 2001, the by-then renamed POL adopted new Articles
BEIS0000581]. These provided (at articles 11 and 78) that POL’s parent
company — Consignia plc — could issue directions to and/or appoint or remove

members of POL’s board.

20 December 2002

47.On 20 December 2002, Royal Mail Group plc (“RMG”, the new name for
Consignia plc) adopted new Articles [BEISO000582]. These conferred new
rights on RMG’s parent Royal Mail Holdings plc (“RMH”, the new name for
Consignia Holdings plc), including in relation to matters requiring RMH’s
consent, the provision of information to RMH, and (at Article 79) appointments
to and removal from RMG’s board of directors. They also conferred some

modest rights on the Special Shareholder (i.e. the Secretary of State), such as

18 Under Consignia Holding plc’s Articles, the “Special Share” may only be issued to the
Secretary of State: article 11.
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 15 of 20
WITN11020100
WITN11020100

the right to access certain advice to RMH, where RMH requests this (at Article
128).

48.On the same day, POL also adopted new Articles [BEISO000583]. Articles 11
and 78 remained essentially as before, though a new power to veto the POCL
chief executive was given to POL’s parent (RMG); and provision for

engagement by the Special Shareholder with POL.

23 January 2003

49.On 23 January 2003, RMH adopted new Articles [BEISO000584]. These
included provision for the Special Shareholder to be consulted in relation to

certain “Relevant Issues”, and to appoint and remove RMH board members.

7 August 2007

50.On 7 August 2007, POL’s Articles were amended [BEISO000585], though no

substantial changes to the corporate governance framework were made.

2008-2009

51.Between 3 June 2008 and 3 June 2009, RMG became POL's sole shareholder.

10 March 2009 and 8 December 2011

52.On 10 March 2009, POL, RMG‘? and RMH all amended their Articles

[BEIS0000586, BEISO000587 and BEIS0000588]. RMH’s Articles were

‘? Which had become a private limited company, Royal Mail Group Ltd, on 16 March 2007.
First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 16 of 20
WITN11020100
WITN11020100

amended again on 8 December 2011 [BEISO0000589]. No substantial changes

were made to the corporate governance arrangements in any company.

1 and 2 April 2012

53.On 1 April 2012, RMG’s entire shareholding in POL were transferred to RMH,
which as a result become direct sole shareholder in POL. A shareholder NED
was also appointed on this date to represent the Secretary of State’s interests

on the POL board.

54.On 2 April 2012, a single redeemable preference share in POL was issued and

allocated to the Secretary of State.

55. Therefore, as at 2 April 2012, the Secretary of State held all but one ordinary
share and was the holder of the only Special Share in RMH, which in turn held
all the ordinary shares in POL; and the Secretary of State was the holder of the

sole redeemable preference share in POL.

56.On that same day (2 April 2012), POL adopted new Articles [BEISO000590}.
This conferred additional rights and powers on the Secretary of State (as
Special Shareholder), including the right to attend and speak at POL general
meetings (article 10(b)), and set out matters requiring prior consultation with the
Secretary of State (including in relation to the constitution of POL’s board)

(article 11).

10 and 12 September 2013

First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 17 of 20
WITN11020100
WITN11020100

57.On 10 September 2013, RMH’s name changed to Postal Services Holding
Company plc (“PSHC”), and it adopted new Articles [BEISO000591]. On 12
September 2013, POL also adopted new Articles [BEISO000592]. No material

corporate governance changes were made.

1 April 2016

58.On 1 April 2016, ShEx was transferred to form part of UKGI, with UKGI taking
over the POL corporate governance role from ShEx on behalf of the

Government. UKGI also took on policy sponsorship of POL.

12 June 2017

59.On 12 June 2017, all of PSHC’s shares in POL were transferred to the Secretary
of State, who therefore became — and has remained — the direct sole

shareholder in POL.

2018

60.In the summer of 2018, the Post Office Policy team was established in BEIS,
taking responsibility for policy sponsorship of the Post Office (which had
previously sat with UKGI). UKGI continued to act as the corporate governance

sponsor.

19 March 2020

61.On 19 March 2020, POL adopted new Articles [BEISO000593], which amongst
other things made provision for additional circumstances in which the Special

Shareholder’s prior consent was required, including in relation to development

First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 18 of 20
WITN11020100
WITN11020100

of the Group Strategic Plan, and contained a power to issue directions: articles

7,9 and 46.

1 April 2020

62.On 1 April 2020, the “Post Office Limited: Shareholder Relationship Framework
Document’, to which I refer in paragraph 38 above, came into effect. It was

published by BEIS the previous month.

Statement of Truth

I believe the content of this statement to be true.

Dated: 02/02/2024

First witness statement of Gareth Davies to the Post Office Horizon IT Inquiry
Page 19 of 20
Index to First Witness Statement of Gareth Davies

WITN11020100
WITN11020100

Document Description

URN

Control Number

oT

Memorandum of Understanding
between the Department for
Business, Energy and Industrial
Strategy and UK Government
Investments Limited, 12
December 2019

BEIS0000578

BEIS0000578

02

Post Office Counters Limited’s
Articles of Association, 29 July
1987

BEIS0000579

BEIS0000579

03

Consignia Holdings plc’s Articles
of Association, 4 January 2001

BEIS0000580

BEISO000580

04

Post Office Limited’s Articles of
Association, 4 October 2001

BEIS0000581

BEISO000581

05

Royal Mail Group plc’s Articles of
Association, 20 December 2002

BEISO000582

BEIS0000582

06

Post Office Limited's Articles of
Association, 20 December 2002

BEIS0000583

BEIS0000583

07

Royal Mail Holdings plc’s Articles
of Association, 23 January 2003

BEIS0000584

BEISO000584

08

Post Office Limited's Articles of
Association, 7 August 2007

BEISO000585

BEIS0000585

09

Post Office Limited’s Articles of
Association, 10 March 2009

BEISO000586

BEISO000586

10

Royal Mail Group Limited’s
Articles of Association, 10 March
2009

BEIS0000587

BEIS0000587

1

Royal Mail Holdings plc's Articles
of Association, 10 March 2009

BEISO000588

BEIS0000588

12

Royal Mail Holdings plc’s Articles
of Association, 8 December 2011

BEISO000589

BEIS0000589

13

Post Office Limited's Articles of
Association, 2 April 2012

BEISO0000590

BEISO000590

14

Postal Services Holding Company
pic's Articles of Association, 10
September 2013

BEIS0000591

BEISO000591

15

Post Office Limited’s Articles of
Association, 12 September 2013

BEIS0000592

BEISO000592

16

Post Office Limited's Articles of
Association, 19 March 2020

BEIS0000593

BEIS0000593

Page 20 of 20